What is Logo churn vs revenue churn? Definition, Formula & Benchmarks

What is logo churn vs revenue churn?

Logo churn counts how many customers you lose; revenue churn measures how much recurring revenue you lose. They can diverge sharply: lose a handful of tiny accounts and logo churn looks bad while revenue barely moves, or lose one whale and revenue churn spikes while logo churn stays low. Track both.

Formula

Logo Churn = Customers Lost ÷ Starting Customers; Revenue Churn = MRR Lost ÷ Starting MRR

Customers LostNumber of accounts that cancelled in the period
Starting CustomersTotal active customers at the start of the period
MRR LostRecurring revenue lost to cancellations and downgrades
Starting MRRTotal monthly recurring revenue at the start of the period

Worked example

Lose 5 of 200 customers (2.5% logo churn) but they were all small, costing $2,000 of $100,000 MRR, and revenue churn is just 2%.

Why it matters for fast-growing companies

Looking at only one number hides real risk. Low logo churn feels safe until you notice a few large accounts drove most of your revenue loss. Comparing the two tells you whether you're losing small or big customers, which points to very different fixes in pricing, segmentation, or account management.

Frequently asked questions

Can revenue churn be negative?+

Gross revenue churn can't go below zero, since you can't lose less than nothing. But net revenue churn can be negative when expansion from existing customers outweighs what you lose to cancellations and downgrades. Negative net churn means your base grows on its own, which is a hallmark of strong SaaS businesses.

Which should I optimize for, logo or revenue churn?+

Revenue churn usually matters more to the bottom line, because keeping dollars is what funds the business. But watch logo churn too. A rising count of small accounts leaving can be an early warning of product or onboarding problems that will eventually reach your bigger customers.

Logo churn vs revenue churn